Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (116540)	4/10/2002 8:32:56 PM
From: JohnG	Read Replies (1) \| Respond to of 152472

Want to buy some AWE bonds? Soon to become junk bonds. <GGGG> 10 Apr 2002, 08:02 PM EDT Msg. 623 of 623 AT&T Wireless May Cut Bond Sale 17% to $2.5 Billion (Update2) By Terence Flanagan New York, April 10 (Bloomberg) -- AT&T Wireless Services Inc. may cut a planned bond sale by as much as 17 percent to $2.5 billion and is offering higher yields on the debt to lure investors who fret the telecommunications company's cash flow will fall short this year. The third-largest U.S. mobile-phone firm will sell the bonds tomorrow morning, said people familiar with the sale. The company earlier this week had planned to raise $3 billion. AT&T Wireless last month said profit excluding depreciation and amortization will rise about 22 percent to 25 percent this year. On a conference call yesterday, Chief Financial Officer Joseph McCabe said he'd ``be the last person to say our guidance is a slam dunk.'' That made some investors reluctant to lend without steeper terms, as lower profit would increase the risk of a credit-rating cut that could erode the debt's value. ``The call caught people off guard,'' said Jeff Hutz, an analyst at Conseco Capital Management, which is buying AT&T Wireless debt for the $25 billion of bonds under management. ``People are realizing how aggressive their targets are.'' The Redmond, Washington-based company plans to use proceeds for general purposes, which may include acquisitions, debt repayment, and capital spending. AT&T Wireless doesn't need the full $3 billion as it probably will use much of the money to pay off higher-cost debt, Hutz said. Company spokesman Mike DiGioia said he didn't know of a change to the sale. ``We're still working on the terms originally laid out,'' DiGioia said. ``If there are changes we will let everybody know.'' Sweetened Terms AT&T Wireless is slated to sell 10-year notes to yield 3 percentage points to 3.13 percentage points more than U.S. Treasuries, or as much as 8.35 percent based on current Treasury yields. Earlier, the company was offering the debt to yield about 2.75 percentage points more than Treasuries. The company will also sell five-year notes to yield about 3 percentage points more than Treasuries, or 7.58 percent. The company had offered the debt to yield 2.6 percentage points to 2.65 percentage points more than government debt. ``There are still long-term questions'' about the wireless- phone industry, said Dan Jenkins, who helps manage about $9 billion of bonds for the State of Wisconsin Investment Board. ``What technology is going to be the right one, how much demand is going to be there, and how much it's going to cost.'' Lehman Brothers Holdings Inc., J.P. Morgan Chase & Co. and Merrill Lynch & Co. are managing the global offering. The notes carry investment-grade ratings of ``Baa2'' at Moody's Investors Service and ``BBB'' at Standard & Poor's. AT&T Wireless made its last big bond offering in March 2001, when the company raised $6.5 billion through the sale of five- and 10-year notes, and 30-year bonds. The 10-year debt was priced to yield 3.07 percentage points more than Treasuries.

To: pcstel who wrote (116540)	4/11/2002 1:52:35 AM
From: oconnellc	Read Replies (1) \| Respond to of 152472

I was just looking at random messages on this thread and I thought I would ask, when do people really think QCOM is actually going to be in 'Buy' range? I shorted 200 (which for me was a lot) shares at 56. Now that it is below 36, should I start to think about covering? April $40 puts are between $4 and $5 based on which exchange you look at, and I wouldn't mind putting $800 in my pocket and letting the market close me out. What do the experts here think? Chris